Bitcoin Facts You Should Know
by The Blockchain Diary on 2019-04-27
Since Bitcoin was released almost a decade ago, everyone from the regular Joes to industry experts has been betting on its success. Over the years of Bitcoin’s existence, we’ve seen the immense potential of the cryptocurrency. You’ve probably heard news about people who’ve turned into kid millionaires when they fortuitously purchased bitcoins early on. The world of cryptocurrencies is abuzz with curiosity and excitement, and Bitcoin’s success is a quintessential example of what to expect in the crypto world.
Who is Satoshi Nakamoto?
Bitcoin is a digital currency created in 2009 by an anonymous entity only referred to as Satoshi Nakamoto. The creator is credited as the world’s first cryptocurrency, purely digital currency that was set to make waves in the banking and finance world and beyond. Without the need for a middleman or a trusted central authority, it was a complete reimagination of how money works. Since its inception, it has grown into an investment vehicle and a payment technology with an an ever expanding user base.
What drove Satoshi to create Bitcoin?
Bitcoin emerged in 2008 around the time when Occupy Wallstreet was accusing big banks of charging exorbitant fees, rigging the system, duping clients, and misusing borrowers’ money. It was speculated that Bitcoin creators were inspired by these faults in the system to look for ways to cut fees, hack corruption, and make transactions more transparent. They created a decentralized system that puts the customer in charge, eliminates the middleman, and removes interest fees. Since its release, Bitcoin has risen to become the leading digital currency. This piece will help you understand everything you need to know about the cryptocurrency.
Debunking Bitcoin Myths
As a currency, Bitcoin means different things to different people but a lot see it as a solely digital currency used by the dodgy internet people. Others see Bitcoin as the future of a freely moving currency without any ties to a central authority. The truth is that Bitcoin is one of the best ways to make payments online without involving banks or other intermediaries. You can use Bitcoin to buy Xbox games, shop for furniture on Overstock, or book hotels on Expedia. You can also make money by trading Bitcoin.
Why are there so many Altcoins?
With a massive user base, Bitcoin as a payment method became relatively slow and scaling issues emerged. Altcoins were developed by people concerned about the future of the digital currency. However, these cryptocurrencies never came close to offering meaningful solutions to the key issues they set out to address. Bitcoin Cash simply increased the block size to make it more scalable, something that Bitcoin could easily do. Altcoins like Ethereum, Dogecoin, and Litecoin also came into the market but they still trail Bitcoin in terms of value, security, and user base.
How Bitcoin Works ?
Back to the basics - how does Bitcoin work? Bitcoin works on a vast public ledger known as Blockchain. The blockchain is a public record of Bitcoin transactions in chronological order. All Bitcoin users have access to the Bitcoin Blockchain. Every confirmed transaction is included in the ledger as a ‘block.’ Each block is broadcasted to the peer-to-peer computer network of users who, in turn, validate the transaction. Each user is aware of each transaction, which helps to avoid double spending and fraud.
The distributed nature of the ledger allows the verification of transactions by consensus by all members. This offers trust and security without an intermediary. The blockchain is a key component of the Bitcoin. It allows people to mine, trade, and store bitcoins. The blockchain is a structure that builds on itself. It’s a new way of organizing data by forming a chain of linkable data; one block is completed and linked to the next one.
The blockchain holds information that has been validated and can’t be erased or rewritten. Transactions on the blockchain are linked to the user’s Bitcoin address and can only be traced back to the user if the address is linked to a real identity. The names of the people involved in the transaction are never revealed. This anonymity helps to keep the user’s transactions private, letting them buy or sell anything without easily tracing it back to them.
Enjoyed reading post? then share it with your friends on Facebook and Twitter!